- T. Rowe Price Has Identified Two Types of Retirees. Which Type Are You?
T. Rowe Price has identified two types of retirees and launched a retirement tool to serve their financial needs. The global investment management firm divides retirees into two categories: savers and spenders. Let’s break down how they are defined, which… read more…
- 7 Tips for Withdrawing From Retirement Accounts in a Down Market
You’ve spent a lifetime accumulating funds for a smooth retirement. You’ve thought ahead and assumed a decent yield for your investments, calculating exactly how much you’ll need to retire comfortably. What if your retirement years coincide with a down market? Selling your investments at depressed prices creates a two-fold problem for retirees. When prices fall,… read more…
- How to Retire at 55 and Live Off Your Dividends
Retiring at 55 and living off dividends requires careful planning, strategic investing, and a strong focus on income-generating assets. Early retirement dividend investing involves building a portfolio of reliable dividend-paying stocks, funds or other income-producing investments that can sustain a comfortable lifestyle without relying on traditional employment. Factors such as dividend yield, payout consistency, and… read more…
- How to Retire at 61: Step-by-Step Plan
Retiring at 61 means stepping away from work before reaching full Social Security retirement age, which can affect income streams, healthcare access and tax considerations. Those aiming to retire at 61 often rely on a mix of personal savings, investment income and possibly part-time work. Planning around Medicare eligibility, which begins at 65, and understanding… read more…
- Your Retirement Portfolio Needs More International Exposure
For most Americans, investing for retirement is a long-term practice that occurs over the course of many decades. It requires looking beyond the daily ups and downs of the stock market, remaining disciplined in the face of economic volatility and adopting a long-term focus — and possibly one that looks beyond U.S. borders. While U.S.… read more…
- How to Retire at 58: Step-by-Step Plan
Retire at 58, and you may be looking at a retirement that lasts four decades or more. Planning for that span of time means accounting for inflation and healthcare costs before Medicare. You’ll also face a delay in Social Security benefits. Meanwhile, consider how early withdrawals from retirement accounts are taxed and whether your savings… read more…
- How to Retire at 70: Step-by-Step Plan
While many people dream of retiring as soon as possible, others love their jobs and want to work as long as possible. Older workers who want to retire at 70 have multiple advantages over others who retire earlier. If you’re still working past the traditional retirement age or are considering it, there are a handful… read more…
- How to Retire at 64: Step-by-Step Plan
In many Americans’ minds, the traditional retirement age is 65. But often people want to wrap up their career sooner than that. According to a 2021 report from Natixis Investment Managers, younger generations plan to retire earlier. Members of Generation Y… read more…
- Questions to Ask a Financial Advisor About Retirement
Planning for retirement can be overwhelming, because it involves figuring out a plan for your money that is supposed to have last you for a long period of time, and often involves sorting things out now for a point time… read more…
- Spooked by the Russia-Ukraine Crisis? Don’t Do This With Your Retirement Portfolio
In recent months, investors have contended with the emergence of the Omicron variant, central bank policy tightening and persistent inflation. Now, Russia has invaded Ukraine, igniting a geopolitical crisis that is shaking global financial markets. The three major stock market indexes – the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite –… read more…
- How to Retire at 60: Step-by-Step Plan
The traditional age of retirement is 65, but it’s possible to retire at age 60 with planning. Obstacles to early retirement include lack of access to Social Security benefits and Medicare. However, on the plus side 60-year-olds can withdraw from… read more…
- How Prepaying Your Mortgage Can Boost Your Retirement
Paying off your mortgage early, especially before retirement, is a worthy financial goal. But doing so in lieu of investing isn’t the best decision for everyone, according to a recent study from Fidelity. Using a 27-year time horizon, Fidelity pinpointed the thresholds at which paying off your mortgage is wiser than staying invested and vice… read more…
- Ready to Ditch Your 60/40 Retirement Portfolio? Do This Instead
Perhaps no topic is more hotly debated in retirement planning circles than the viability of the 60/40 portfolio. This investing strategy, which calls for 60% of a portfolio’s assets to be invested in stocks and the remaining 40% in bonds, has been the gold standard for retirees and those approaching retirement for decades. But a… read more…
- You Need to Save This Much For Medical Care in Retirement: Here’s How to Start
How much money will you need to cover your medical care in retirement? The answer may surprise you, especially if you haven’t begun to plan for these future medical expenses. A recent study from the Employee Benefits Research Institute found that a couple with median prescription drug expenses will need $296,000 in savings to nearly… read more…
- How to Retire at 57: Step-by-Step Plan
Retiring at 57 is a dream for many, offering the promise of more time to pursue passions, travel, or simply enjoy a slower pace of life. Achieving this goal requires careful planning and a strategic approach to financial management. The journey begins with understanding your financial needs and setting clear retirement goals. It’s crucial to… read more…
- How to Retire at 59: Step-by-Step Plan
The 60s are probably the most common age at which Americans retire. Retiring at age 59 is a possibility, though, with some proper planning. For most people, once they’ve turned 59.5, they can begin withdrawing from their tax-advantaged retirement accounts without penalty. However, under certain circumstances, you can even withdraw penalty-free from these accounts at age… read more…
- Can You Contribute to an IRA After Retirement?
An IRA (and its corollary, the Roth IRA) is a form of tax-advantaged retirement account that lets you save money during your working years so you can withdraw it during retirement. There is no age limit to contributing to an IRA, meaning that you can do so at any point in life. However, you can only… read more…
- Need Cash From Your IRA Before Retirement? This New Rule Can Help
The costs associated with withdrawing money from a 401(k) or IRA early are well-known. Doing so before age 59.5 means paying a 10% penalty on top of ordinary income tax. However, there is a lesser-known way to avoid this steep penalty when withdrawing money early from a qualified retirement plan. The Internal Revenue Service permits… read more…
- How to Retire at 65: Step-by-Step Plan
The age of 65 is the traditional time when people stop working and retire to live off the fruits of their labor. That doesn’t mean 65 is the ideal age for everyone to retire, though. In order to retire at age 65, you’ll want to evaluate your current assets and their income-producing potential, as well… read more…
- How to Retire at 30: Step-by-Step Plan
For many Americans, the prospect of retiring at or near 30 is a thrilling idea. Although it is possible to do, it takes a monumental amount of work and planning to accomplish. According to a 2021 PWC report and data from… read more…
- This Strategy Can Preserve Your Retirement Savings in a Down Market
The primary risk that retirees and those approaching retirement face is an obvious one: running out of money. However, a study published in the Journal of Financial Planning suggests reverse mortgages can help retirees protect their portfolios from market dips and extend their savings. Rather than relying exclusively on distributions from investments, retirees can temporarily… read more…
- How to Retire With $4 Million
Everyone wants enough money waiting for them in retirement to live comfortably. But if you’re used to a certain lifestyle, you may need a bit more than the minimum amount. A nest egg worth $4 million can provide many retirees with enough money for everyday expenses, as well as general freedom to do what they… read more…
- Understanding Delayed Retirement Credits
Delayed retirement credits, which lead to larger Social Security benefits in the future, can be a financial windfall for individuals who earn them. They may be earned by deferring your Social Security benefits past your full retirement age, something you can do until you turn 70. Delayed retirement benefits are a motivation to go as… read more…
- Why You May Need to Save Twice As Much for Retirement As Your Parents
How much will you need to save before you can retire? It’s a simple question at the root of most people’s plans for their golden years. Answering it, however, can be far more complicated. Using research that reexamined the viability of a popular retirement planning strategy known as the 4% rule, a Morningstar portfolio strategist… read more…
- The Real Reason Index Funds Belong in Your Retirement Portfolio (It’s Not Because They’re Cheap)
John Bogle, the father of index investing and founder of the Vanguard Group, revolutionized the investment industry when his company rolled out the world’s first index mutual fund in 1976. Since then, these passive investment vehicles have steadily grown in popularity, largely due to their consistent returns and low expenses compared to actively managed funds.… read more…